ResMed shares rise over 3% as $490 million MatrixCare divestment fuels buybacks

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Resmed rises 3.12% today, hits $199.03

Highlights

ResMed sold its MatrixCare software unit for $490 million, reallocating proceeds to share buybacks after a recent $340 million acquisition.
Despite divestment losses, ResMed maintains a solid dividend history and strong financial health ratings.
Shares remain under pressure below key technical averages, with a 76% chance of moving lower and a five-day trading range projected between $189.49 and $208.57.

Share buybacks planned as divestment offsets acquisition-driven dilution

ResMed recently divested its MatrixCare software business for approximately US$490 million, after acquiring it in 2018 for US$750 million. Proceeds from this sale are earmarked for share buybacks that will partially offset dilution from ResMed's recent US$340 million purchase of Noctrix in early June. The company maintains a strong dividend track record and robust financial health ratings.

Anton Kharitonov, expert at Traders Union, highlights persistent weakness in ResMed’s technical setup. He notes the company remains under pressure below all key moving averages, with clear bearish signals from the alignment of the 50- and 200-day averages. Kharitonov observes that the oversold readings across multiple indicators suggest limited short-term upside, especially given the sizeable loss on the MatrixCare divestment and ongoing dilution from recent acquisitions. He sees the announced share buybacks as only a partial offset to structural headwinds. "Despite today’s bounce, the technical picture shows no sustainable momentum until resistance above $200 is convincingly reclaimed," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, views the MatrixCare divestment and immediate share buybacks as positive capital allocation moves. He believes ResMed’s robust dividend record and strong financial health will support renewed investor interest. The company’s proactive financial management positions it for future growth, despite recent market setbacks. "With the proceeds from MatrixCare redeployed to offset dilution, I expect ResMed’s bullish structure to remain intact and further opportunities for upside to emerge," says Karapetjanc.

Sholanke Dele, market strategist, sees lingering risk in ResMed’s performance due to weak momentum and volatile price swings. He cautions that, despite some intraday gains, prevailing sentiment reflects skepticism after a loss-making divestment. Dele questions the effectiveness of limited buybacks against the backdrop of recent acquisition dilution and technical headwinds. "Unless sentiment shifts dramatically, the probability of a sustained recovery above $200 remains subdued," states Dele.

Bearish momentum endures with mixed signals amid oversold conditions

ResMed is trading below the 20-day ($199.43), 50-day ($200.14), and 200-day ($236.8) moving averages, signaling persistent selling pressure across all key timeframes. The Ichimoku Kijun level at $203.54 is a resistance barrier, with the near-term ceiling and floor set at $199.43 and $194.04. The alignment of the 50-day below the 200-day confirms a lengthy bearish bias. Momentum readings are mixed: while the MACD flashes strong buy momentum, the ADX reads neutral. RSI at 43.05 and a Stochastic RSI at zero indicate oversold territory, as does a CCI at -58.29 and a negative Bull/Bear Power of -5.82, highlighting continued weakness despite the daily gain. Intraday volatility is notable at 2.84%, with recent trading near session highs and partial confirmation of a bullish swing.

Earlier, analysts noted that ResMed's short- and medium-term momentum was positive, though longer-term upside appeared limited by persistent technical resistance and overbought conditions. The current corporate action and ongoing bearish technical signals highlight a shift toward a corrective phase, making $199.43 a critical near-term level for traders monitoring potential breakouts or further downside risk.

Source of Data: RMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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